The blockchain has proven useful for financial transactions and similar types of transactions between various participants. Blockchains are append-only databases of transactions, which are shared and replicated with a consensus algorithm to resolve distributed processing conflicts and prove the validity of the transactions. Each transaction signs and builds on the prior transaction to form an accurate accounting of ownership and value. Each approved transaction becomes part of the chain and is shared among multiple entities, such as enterprise organizations. A ledger model can be quickly adapted for other purposes related to tracking and monitoring user activities, especially, high transaction volume systems. These adaptations may undergo interchange settlement lag, pegged currency of transactions and high-speed negotiations.
Sidechains were developed to address issues with interchange settlement lag, pegged currency of transactions and high-speed negotiation. These secondary chains quickly clear transactions and speed the proof-of-work process. While these secondary chains speed transactions, the overall validation chain could still be further optimized in real-time transactions.